Rainbow Rare Earths Limited (LON:RBW) has said a Competent Person's Report (CPR) received from MSA, dated 4 June 2019, has increased the estimation of the group’s high-grade rare earth vein tonnages by 30% at the mid-point of the range, even taking into account depletion from recent mining production.
The AIM-listed firm – which is focused on the Gakara Project in Burundi - said the full text of the CPR contains, inter alia, a review of the company's recently announced strategy to invest in the opening of additional mining areas and new mining machinery and endorses Rainbow's strategy on the assumption that risk areas identified in its report are addressed.
In addition, the group said, MSA has increased its estimation of the high-grade rare earth vein tonnages classified by JORC as an Exploration Target from 20,000-80,000 tonnes at the time of Rainbow's IPO in 2017 to 27,000-103,200 tonnes.
Rainbow Rare Earths said, however, MSA is of the view that some additional work is required before it could translate its calculations for the Exploration Target into a Resource.
It noted: “Specifically for the high grade deposits, it suggests more extensive use of laboratory testing of channel samples (rather than hand held Niton XRF data which Rainbow has used for a number of years) and additional computerised vein modelling; and for the lower grade deposits such as Kiyenzi a comprehensive laboratory sampling of all existing drill core from the 2018 drilling campaign plus additional drilling and metallurgical testing, all of which is planned by Rainbow in the coming months.”
The group pointed out that the CPR – which is now available on its corporate website www.rainbowrareearths.com - will be incorporated into the prospectus related to the recent announced convertible loan conversion exercise which the company anticipates publishing next month.
In afternoon trading, shares in Rainbow Rare Earths were .3% higher at 4.50p.